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Bankruptcy, Insolvency & Reorganization

Practices

Bankruptcy, Insolvency & Reorganization
Zhong Lun is among the first Chinese law firms to practice bankruptcy, insolvency, and reorganization laws. With an extensive bench of over 20 seasoned partners and nearly 100 associates based in different offices, our group is capable of providing efficient and high-quality legal services for our clients. We have been included in the rosters of approved bankruptcy administrators by various courts, including the Beijing Municipal Higher People’s Court, Shenzhen Intermediate People’s Court, Shanghai Higher People’s Court, Guangzhou Intermediate People’s Court, Guangdong Higher People’s Court, Shandong Higher People’s Court, Chengdu Intermediate People’s Court, Sichuan Higher People’s Court, Wuhan Intermediate People’s Court, Hubei Higher People’s Court, Nanjing Intermediate People’s Court, and Chongqing No. 5 Intermediate People’s Court. 
 
We have handled a raft of high-profile bankruptcy cases as administrator, including reorganizations and pre-reorganizations of listed companies such as *ST Feima, *ST Deao, *ST Taibai, *ST Powerise, Fujian Nuoqi (H share), and Fuguiniao (H share); nationally prominent liquidations of financial institutions, including Hantang Securities and Minfa Securities; and reorganizations of large businesses such as Huishan Dairy Group involving an array of 108 companies. The reorganizations of *ST Taibai and Anxi Tieguanyin Corporation were selected into the first and second national “Ten Typical Bankruptcy Cases” released by China’s Supreme People’s Court, and the reorganization of Huishan Dairy Group was awarded as a 2020 Impact Deal/Case of the Year by AisaLaw.
 
We have also acted as legal counsel for strategic investors in a range of significant cases, of which examples are the reorganizations of Shenyang Machine Tool (Group) Co., Ltd. and *ST Shenji, as well as the substantive consolidated restructuring of Peking University Founder Group Company Limited and its four subsidiaries, namely, Founder Industry Holdings Co., Ltd., Peking University Medical Industry Group Co., Ltd., Peking University Founder Information Industry Group Co., Ltd., and Peking University Resources Group Limited. Furthermore, our significant presence as legal counsel for debtor in the reorganizations of many listed companies such as *ST Shengrun, *ST Kejian, and *ST Zhonghua has led to positive social effects.
 
Award-wise, we have been highly recommended by Chambers Asia Pacific as a Band 1 bankruptcy and restructuring law firm for many years and garnered strong recognition in rankings released by Asialaw Profiles, The Legal 500 Asia Pacific, and China Business Law Journal. In addition to a series of notable articles, our group has also published a number of books in this area, including the Notes for Enterprise Bankruptcy Law, An Interpretation of People’s Courts’ Adjudication Rules in Enterprise Bankruptcy Cases, and the Exit and Rebirth of Distressed Businesses – A Study on Legal Practice in Bankruptcy, Insolvency, and Reorganization.
 

 

Scope of Services

  • Serving as bankruptcy administrator or member of liquidation teams as appointed by Chinese courts
  • Serving as temporary administrator in pre-reorganization of debtors as appointed by Chinese courts to investigate debtors’ general situation, assets, and liabilities, assist debtors to consult with their investors, creditors, prospective investors, and other interested parties, and help the parties reach consensus on reorganization plans
  • Conducting investigations on matters relating to debt restructuring of distressed businesses, proposing related solutions, and advising on out-of-court reorganization
  • Advising debtors, strategic investors, shareholders, and creditors of, and other interested parties to listed companies or non-listed businesses on their reorganization, settlement, and debt restructuring
  • Representing creditors, debtors, and other relevant parties in filing bankruptcy petitions against their debtors
  • Representing shareholders and creditors of companies in filing petitions for compulsory liquidation of the companies
  • Participating in bankruptcy and compulsory liquidation proceedings as legal advisor for creditors, reclaimers, and other rights holders
  • Assisting and supporting clients in cross-border bankruptcy matters
  • Participating in risk disposition of financial institutions as appointed by Chinese regulators or relevant parties
  • Other services related to bankruptcy, insolvency, and reorganization